SEC Supports Do Kwon’s Request to Delay TFL Hearing

SEC has supported the request of Do Kwon, co-founder of the collapsed Terraform Labs (TFL), to postpone a court hearing. This was reported by Cointelegraph, citing court documents. 

The Commission stated that it is “fully prepared, willing, and able to proceed” with the case against TFL and its head, but agrees on the necessity to change the start date.

“The SEC joins Kwon’s request for a brief delay so he can participate in the trial. If the hearing date is postponed, the agency respectfully requests it be set for April 15, 2024,” the document states.

On January 11, the TFL co-founder asked a US court to delay the proceedings, as he wanted to attend in person but could not due to extradition delays. 

Despite the SEC’s agreement to postpone the date, the agency opposed separating Kwon’s case from that of Terraform Labs. In February 2023, the Commission charged both parties in a single proceeding. 

“Conducting two trials unnecessarily would require witnesses, including SEC whistleblowers and retail investors with limited financial means, to testify twice about the same facts,” the regulators stated.

Previously, in a summary judgment, the court found that TFL offered and sold unregistered securities in the form of UST, LUNA, wLUNA, and MIR. 

In addition to the US, South Korean authorities have also brought charges against Kwon, including violations of capital markets laws.